Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1887-06-16
THE WHEAT COLLAPSE.

Sth'N VI tttN &S~Sh 4
on the Chicago Boar of Trade-3upe
Wheat Drops Nineteen Cents In Three
Hours
Chicago, June 1.-the june wheat
deal collapsed to-day. The enormous
load proved TO be more than the clique
could stand up under. There was a con-
ference OF the principals and agents last
night, at which is was resolved to aban-
don the deal it is said. In any event
the deal was abandoned and the result
was q panic in the market to-day. june
wheat broke about 1870 and July nearly
100 beforeI O'Clock. There was q scene
of understandable excitement on Change
all day. Nothing like it was ever wit
messed on the board OF trade. Men who
have grown gray III the business say that
the excitement ran higher than on the
elimination Of any of the great corners
that have been attempted in the past.
The climax was reached at ! 2:80, when
Secretary Stone announced from the
gallery the failure of NJ. Rosenfield &
90. J uly broke from around 7Sc to Tao in
less than two minutes, and the official quo-
tations do not mark within &c of the linz
it at which many trades were made. The
names of all the other clique houses were
on every body's lips. The universal hope
was expressed that they had weathered
the terrific storm, andin the same breath
the fear was voiced that they might not
keep their feet. The collapse was SO
complete, the rout SO utter that there
was absolutely no way OF finding ont
how matters stood while che stampede
was in progress. The FIRST item in the
list Of sensational events that crowded
fact and thIok upon each other through
the day was the announcement that 1,035
cars of wheat had arrived yesterday and
that 500 were expected to-day. Then
came stories OF q meeting of the clique
brokers and the Cincinnati principals.
This was followed by the announcement
by Rosenfeld that it was the purpose
of the clique to let the market down as
low IS the crowd would sell it, Gin s.der
to get in OF lower range of values"
Still there were few who really thought
this meant an abandonment of the deal,
but wiser or luckier ones acted upon the
theory that it was the beginning of
the end. The panic may. be said to have
commenced wish the tap of the bell.
june broke sharply from 924o to 5616
but reacted sharplyst to 9lc, then settled
back to $50, end for q while the price
bobbed systematically between $50. ana
goo. with o feeble attempt being made
by the clique brokers to protect the
market. That soul had departed from
thu deal, however, and nothing bat the
empty shell remained to comfort the
crowd. While June was going through
this experience. July was being subject
ed to an ordeal scarcely less trying.
From S3ao st the opening, the market
declined to $3.50. A rebound carried 1t
| upward to S2c.
From $50 q. NJ, the excitement was
intense, but it was nothing compared to
what occurred Immediately thereafter.
It Was as thongha Cyclone had struck
the pit, and the market fairly boiled.
The wheat pit WAS filled with a crush of
| steaming, screaming men. There was
no hagglng over fractions or cents.
Everybody who had anything TO sell
sold it for what they could get, and buy
ing orders were executed like lightning.
Margins were devoured and swept out Of
sight in the twink1ing of an eye. IL was
every fellow for himself and the devil
take the hindermost. Up in the offices
the clerks were making out margin calls.
and aimblefoOted messengers were rae
ling from door TO door with demands for
cash. Never in the history of the board
of trade has there been such an extra.
ordinary call for margins as was wit.
messed to-day. The bull houses were
literally overwhelmed and no attempt
Was made to keep up with the process
sion. June wheat sold down TO 1880,
and trades A@1o below the Official
record we're reported. July broke to
74c, and August sold off from $50 to 100.
There was adecline OF 90 in September.
The mere statement that cash wheat
declined 19o in three hours, and that
July had lost 911ac in the same length OF
time, is q very tame way OF expressing
the facts. Nevertheless, this decline
represents an actual destruction OF near
~ 50 100000 in the value of cash wheat
that ia nov here in store and on track,
1t represents the transfer of nyWhere
from 81, 900 900 to $IQ,000,000 in profits
on open Grades in june and July from
Ebull to bear. accounts on the
books OF members of the board
LOT trade. Individual fortunes
were wrecked and other fortunes
reared in an hour. It would probably
be no exaggsfation to state that the
volume OF business in the wheat Dit
aggregated 100, 000,000 bushels. It might
have been much above that figure, The
outside markets broke badly, the shrink.
age Ringing from l55aac to 40. The foreign
markets were also weak.sand lower.
Late futures in the market only suffered
q moderate shrinkage.
On the afternoon board there was for
9 while q renewal of the most exciting
scenes or the day. When the secretary
made his way to the gallery with his
gavel, it was known at once that the
failures would be announced. Following
his rspping Secretary Stone announced
the failure of Hamil & Brine and e. w.
Bailey & 90. The announcement OF the
FIRST failure produced o decided sensation
as Hamil& Brine has been a stanch
house and in good repute. George O.
Brine is a director. The announcement
OF the failure OF e. ". Bailey & 90, i'm
mediately followed. Then came the
most important announcement of the
day. II was was from O. j. Kershaw &
o., and was as follows:
"Gentlemen-We have assurances Of
ample funds to meet all calls upon us
by Tomorrow morning, and request that
no trades with us be closed out.
Respectfully,
Cd KERsHAw 81 Oo."
A yell of delight followed this an
nonncement, At Rosenfe1d's Office this
afternoon Manager Frank johnson Was
in charge and said The clique had vio-
lated ell OF its verbal, written and. teIe-
graphic promises to pnt up more mar
gins to-day. sWe saw them in this city
YESTERDAY personally and they promised